Foreign trade, technical progress and labour market in western Germany from 1975 until 1990

Abstract

"The article examines empirically the influence foreign trade and technical progress had on qualification- related developments on the labour market in western Germany from 1975 to 1990. It shows that on the one hand the remuneration for both low and highly qualified work increased more considerably than it did for the middle qualification level, and that on the other hand the employment development is positively correlated with the qualification level. Based on relative price changes as the transmission mechanism between foreign trade and factor prices, import competition increased comparatively strongly in the industries which employ mainly low or highly qualified workers. Conversely the total factor productivity developed comparatively favourably in the industries which employ mainly low or highly qualified workers. If wage rigidities and the consequent unemployment are taken into account, the results are consistent with the fact that the labour market development was determined by foreign trade for low qualified workers and by technical progress for middle and highly qualified workers." (Author's abstract, IAB-Doku) ((en))

Cite article

Fitzenberger, B. (1997): Außenhandel, technischer Fortschritt und Arbeitsmarkt in Westdeutschland von 1975 bis 1990. In: Mitteilungen aus der Arbeitsmarkt- und Berufsforschung, Vol. 30, No. 3, p. 642-651.